Homework Ch 10 12 Part of Required information [The following information applies to the questions displayed below) Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions including S179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn't want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for alo: (Use MACRS Table 1. Table 2. and Exhibit 10:10) 1 pot bo d. The vehicle cost $80,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Year Depreciation deduction 5 6.440 2021 2022 Table 1 MACRS Half-Year Convention Year 1 20-Year 3.750% 7.219 6.677 Year 2 Year 3 6.177 Year 4 Year 5 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11.52 7.70 11.52 8.93 9.22 6.93 5.76 8.92 7.37 6.23 8.93 6.55 5.90 4.46 6.55 5.90 6.56 5.91 6.55 5.90 5.713 Year 6 5.285 4.888 4.522 4.462 3.28 5.91 5.90 5.91 4.461 4.462 4.461 4.462 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 5.90 5.91 4.461 4.462 4.461 4.462 2.95 4.461 4.462 4.461 2.231 5-Year 7-Year Year 1 35.00% 25.00% Year 2 26.00 21.43 Year 3 15.60 15.31 Year 4 11.01 10.93 Year 5 11.01 8.75 Year 6 1.38 8.74 Year 7 8.75 Year 8 1.09 TABLE 26 MACRS Mid-Quarter Convention: For property placed in service during the second quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 25.00% 17.85% Year 2 30.00 23.47 Year 3 18.00 16.76 Year 4 11.37 11.97 Year 5 11.37 8.87 Year 6 4.26 8.87 Year 7 8.87 Year 8 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 30.00 18.00 23.47 16.76 11.97 11.37 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 11.37 8.87 4.26 8.87 8.87 3.34 TABLE 2 MACRS Mid-Quarter Convention: For property placed in service during the third quarter Depreciation Rate for Recovery Period 5-Year 7-Year Year 1 15.00% 10.71% Year 2 34.00 25.51 Year 3 20.40 18.22 Year 4 12.24 13.02 Year 5 11.30 9.30 Year 6 7,06 8.85 Year 7 8.86 Year 8 5.53 TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarter Depreciation Rate for Recovery Period 5-Year 7. Year Year 1 5.00% 3.57% Year 2 38.00 27.55 Year 3 22.80 19.68 Year 4 13.68 14.06 Year 5 10.94 10.04 Year 6 9.58 8.73 Year 7 8.73 Year 8 7.64 AS EXHIBIT 10-10 Automobile Depreciation Limits Recovery Year Placed in Service Year 2021 2020 2019 2018 1 10.100** 10,1008 10,100 10 000 16,100 16,100 16,100 16,000 9.700 9,700 9.700 9,600 and after 5.760 5,760 5.760 5,760 As of press date, the IRS had not released the 2027 limitations for automobiles, so throughour the chapter we use the same limitations as in 2020 for 2027 **$8,000 auditional depreciation is allowed when bonde depreciation is claimed (5768//2F)]